From Challenger to Revolution

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Bob Sahota, Managing Director and Chief Investment Officer of Revolution Asset Management, reflects on his career across major Australian institutions, including Challenger, where he grew fixed income AUM from $1bn to over $9bn. He explains how the GFC shaped his focus on capital preservation and how a lack of liquidity in Australian credit markets necessitates rigorous upfront analysis.

Bob recounts launching Revolution in response to APRA regulations constraining institutional mandates, noting that private credit offered a more flexible, high-yield, and resilient investment path.

Revolution focuses on senior secured loans to non-cyclical businesses (eg Coles and MYOB) and avoids property development and other cyclical sectors. The firm also selectively lends against stabilised real estate and asset-backed securities, taking advantage of illiquidity premia while managing downside risk.

Bob emphasises a philosophy of floating-rate exposure, non-correlated returns, and tight risk controls—delivering steady income rather than chasing yield. He sees strong tailwinds for private credit in Australia, as SMSFs and institutions seek equity-like returns with lower volatility, especially amid market uncertainty and policy changes such as Labor’s proposed tax on unrealised capital gains.

Bob credits trust-based relationships with distribution partners, including Income Asset Management, as critical to sourcing the right deals. 

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Source: Finance News Network